The Hummer was an attention-getting SUV that sold for $80,000 in a limited number of outlets. Then, General Motors proved the smaller version for $50,000 could be sold in many more outlets. To cover costs and reach the market faster, the Hummer 2 shared some parts with other GM cars. To which customer effects did Hummer marketing managers need to pay particular attention?
A)The original Hummer is prestige priced; therefore, the price of Hummer 2 should make sense to customers and reflect differences in the perceived value of the products offered.
B)Comfort and space for families will be important for Hummer 2.
C)High gas mileage will be important for Hummer 2.
D)Colour choices will be important for Hummer 2.

Question

Quizplus · Accepted Answer

The Hummer 2 is being sold at a lower price point and in more outlets, so it is important for the marketing managers to ensure that the price reflects the perceived value of the product. This is particularly important because the original Hummer was a prestige priced SUV. The other options (B, C, D) are not as relevant to the Hummer 2, as it is not being marketed as a family car, a fuel-efficient vehicle, or a car with a wide range of color choices.

The Hummer Was an Attention-Getting SUV That Sold for $80,000